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A Little About The Author JANET XUCCOA BCom LLB Janet is a Partner at Gilligan Rowe & Associates LP where she leads the Professional Trustee division of the Practice in assisting clients, Trustees and Company Directors in various matters that confront them. Apart from this role, she spearheads GRA Money School and is instrumental in marketing for the firm. Over the years, Janet has written numerous articles for different publications including the New Zealand Property magazine, the Investor magazine, Verve magazine and Business to Business Newspaper. She has also contributed to a number of prominent websites and electronic newsletters. Janet holds degrees in accounting and law and is a well-known author and presenter on money and trustee matters. She puts her knowledge and skills to work by presenting at a variety of events and functions throughout the country, mixing her experience and humour to make her points and entertain her audiences. Her profile includes presenting at events held by property groups, Chambers of Commerce, retailers associations, women’s groups, banking institutions, corporate and management organisations. She has also been a keynote speaker at events such as Thrive and Vibe. When not working, she enjoys keeping fit, travelling, scuba diving, antiques, art and crime movies.
Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book is a ‘must read’.- purchase your hard copy of the book here
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Money Personalities This is a chapter from 101 Money Secrets If you ask a person to describe another individual’s character, they will use adjectives such as extroverted, sporty, fun, quiet, intellectual, shy, etc. But if you pose the same question only this time ask them to describe a person’s money personality, they are often lost for words. This is because not much is written about money personalities. A reason for this might be that for many generations the topic of money has been considered distasteful and in some circles, even rude, thus not canvassed. In my view however, the time has come for political correctness to be put aside. People would be well armed if they understood their own money personalities and if they had a nearest and dearest, the money personality of their partner. Much fighting would be avoided if this knowledge was shared between couples. Knowing what your money personality is can help you achieve your money goals. Being unaware of your own money personality can lead to your financial objectives being sabotaged. Yes that’s right. Not knowing your money personality can hinder you from getting out of debt, staying out of the red, saving, making money and generally moving up the wealth ladder. Money experts classify money personalities differently. This can cause a little confusion. I believe however most of us have one of the money personalities I’m going to tell you about. You should also note when reading this information that your overall money personality may contain a dominant and a subservient type. For instance, you may be a money saver but also have a tendency towards being a money spender in respect of some of your expenditures.
Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book is a ‘must read’.- purchase your hard copy of the book here
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3 MONEY SAVERS People who have a money saving personality actually like to put money away for a rainy day. They take care of the small details to ensure they save the pennies so they amass the pounds. Our grandparents were good money savers as often they had encountered a depression and hard times during their lives which gave them motivation to store money away. Money savers will often have very little debt and are indifferent about keeping up with the latest trends in clothing, motor vehicles, etc. They get more pleasure seeing their gold coins mount up than they do driving the latest BMW. By nature, money savers can be worriers. They can get anxious about their bank balances. They are also conservative people. Both of these characteristics lead them to accumulating money in banks. Their refusal however to put their money to work can lead to them missing out on investment opportunities which of course can be detrimental as it hinders their overall financial growth. MONEY AVOIDERS I have a very good friend who fits into this category. She hates thinking about and dealing with money. Her cheque account is often overdrawn and her bills remain unpaid until the final demands arrive. This is not because she doesn’t care. She simply finds dealing with money too complicated. On the flip side, Money Avoiders will be in total control of other areas of their lives. They will even beat all of us to the post on a subject they feel passionate about. When it comes down to money though, these personalities tend to feel out of their depth. As a result, they pay very little detail to what is
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coming in and what is going out. This leads to overspending and debt accumulation. On a severe scale, it can lead to very bad credit ratings and even loss of assets through creditor petitions such as repossessions and mortgagee sales. Overall, Money Avoiders tend not to want to look too deeply at their financial situation, which means their financial position gets worse each and every year. MONEY SPENDERS This title says it all. Money spenders are those citizens who like to spend like there’s no tomorrow. Budgeting is not a word that features in their vocabulary. They spend all they get and then some. These are chic people who like to buy all the latest gadgets. They don’t keep up with the Jones, they set the benchmark the Jones need to step up to. They are often outgoing, generous, big picture people. This of course has its downside. They have no fear when it comes to getting into debt and because they don’t have a handle on all the little details, their debt levels can spiral out of control. Additionally because they have a reasonably large appetite for debt they will frequently take risks and step where angels would fear to tread. MONEY AMASSERS Of all the money personalities, these people are most in touch with themselves and how they view money. They are diligent, enquiring and tenacious in personality. They know where there money goes. They like to save and invest. They enjoy learning about money and how they should put their money to work. There is a downside to Money Amassers however; they can spend a lot of time analysing a situation. The sheer amount of analysis work they do can lead them to financial paralysis. This is due to their risk
Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book
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5 profile. Commonly they are intolerant of risk and thus fail to reap the rewards that investment can bring along. MONEY SPECTRUM Whilst you need to be aware of what your own money personality is, it’s also vital you understand where you’re positioned on the money spectrum. This knowledge will help you identify the financial behaviours you currently exhibit. Once you are cognisant of your own conduct, you will be in a strong position to make any behavioural changes that are necessary in order for you to achieve your financial vision. Human beings tend to fit into two camps, which I’ve labelled Group A and Group B for ease of reference. Group A type individuals hold an attitude that money serves two purposes being first, to enable them to live their lives and secondly, to have fun with. They tend to be very good at forming short range money plans but unfortunately often gather their information from family and friends as opposed to professional advisors. This means the quality of the financial knowledge collected, is somewhat limited, consequently resulting in less than optimal money decisions being made. Group A persons have also be shown to be very aware of the incomes they have coming into their households, but are unlikely to closely track expenses. Even if this is not the case, research has revealed Group A persons are unlikely to actively manage money and set goals. They are irregular savers and frequently incur consumer type debt. This may be because Group A individuals often do not carry insurances because they do not take long range perspectives and plan for the unexpected occurring in their lives. Thus, they are forced to take on debt to deal with the unexpected.
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6 Finally, Group A persons tend to have no or little investments and no plans in place for their retirement. This makes perfect sense as Group A individuals hold short range views. If you fit into Group A congratulate yourself on your ability to think short run. This capability can assist you in forming small financial goals and putting in place steps and processes towards achieving those small goals. Be aware however of your limitations. Try to be open in seeking out financial information. Endeavour to form long range monetary plans, especially in relation to preparing for your retirement. Actively engage in money management. This means eliminating debt and building up a savings reserve. If necessary, bring into your life qualified advisors to help you with these matters. Group B individuals are in a way the opposite of Group A people. Their attitude to money is that it’s essential to them living their life and that in order for them to feel comfortable, there must be money in the bank. Those who hold camp in Group B are great at creating long range financial plans and have no hesitation in calling in professional advisors to assist them. They will have savings and insurance policies in their lives and often investments or at least plans to purchase investments to see them live a comfortable retirement. What trips Group B people up however is their focus. It’s frequently too long ranged. They have difficulty in putting in place individual steps to achieve their money visions. They plan on doing something towards realising their financial goals, they just don’t get around to starting. Additionally, Group B individuals are very aware of their expenses but often are much less conscious of their incomes. This leads them to engaging in sub-optimal money management behaviours.
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7 If you are a Group B inhabitant, acknowledge you have innate abilities to set strategic long range plans. But be aware that those plans have to have steps under them to ensure they come to life. In this respect, call in your professional consultants and get assistance to detail the steps you need to take in order to realise your financial goals. When you do this, remember to put in time deadlines by which you must take those steps. Otherwise, given your focus, you’re likely to delay implementing those steps. Whenever I teach this subject, I’m asked what Group is best to belong to. In my view, both groups have their strengths and weaknesses and the group you naturally identify with, will depend quite a bit on your own money personality. I however want to trend towards the Group B side of the fence. This is because I think it’s easier to correct one’s behaviour if you fit into this camp as you have less psychological behavioural biases to fight against than if you fitted into Group A. Thus, it’s easier to make behaviour modifications so as to increase your chances of accomplishing your financial goals and achieving your monetary visions. The diagram below shows the different Groups and also notes where the money personalities we’ve previously discussed fit.
Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book is a ‘must read’.- purchase your hard copy of the book here
Please Share! MONEY PERSONALITIES SUMMARY If you can understand your own money personality and where you fit on the money spectrum, you’ll be able to see how your personal characteristics, attitudes and behaviours impact on your financial wellbeing. With this knowledge you’ll be empowered to make any changes that are necessary in order for you to begin your journey towards gaining financial understanding and comfort. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ CAVEAT FOR MONEY SECRETS 101 It is vital for all readers to note the commentary in this book is of a generalised nature. It contains broad s p ectrumremarks,universal observations and generic concepts. As such, the comments in this book should not be taken in substitution for a considered opinion and specific advice, pertinent to an individual’s state of affairs.
Accordingly, I strongly recommend that before a reader undertakes and implements any financial decision, they procure professional, independent advice from a suitably qualified advisor, such advice to be comprehensive in character and appropriate to an individual’s personal circumstances and financial affairs.
Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book is a ‘must read’.- purchase your hard copy of the book here
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Money Secrets 101 If you want to understand how to manage your money and make it work for you, then this book is a ‘must read’.- purchase your hard copy of the book here